The purpose of this study is to determine in subjects with Type 2 DM receiving combination oral hypoglycemic agents with a HbA1c>8.0% 1) whether adding on inhaled insulin therapy improves glycemic control vs oral agents alone 2) whether monotherapy with inhaled insulin alone achieves better control than oral agents alone, 3) and to look at the toleration and safety of inhaled insulin and its effects, if any, on pulmonary function tests after 3 months.